September 4, 2008 - A federal appellate court on Tuesday, 9/2/2008 allowed New York (NY) City to move forward with four lawsuits against roughly 10 online cigarette vendors, accusing the out-of-state companies of violating federal and state laws by failing to report cigarette purchases by city residents. The city’s lawsuits, begun in 2003, assert that the online vendors have failed to file federal Jenkins Act reports, which are intended to alert state tax authorities to out-of-state cigarette purchases so that the purchases can be subject to local taxes.

Mayor Bloomberg portrayed the decision as a victory. “We will continue moving forward vigorously against those who break the law and deprive the City of vitally needed tax dollars – especially when such lawbreakers also undercut public health,” he said in a statement. The decision is the latest step forward in Mayor Bloomberg's efforts to reduce smoking in New York City, which have led to a 21 percent drop in adult smoking and a 52 percent drop in smoking among public high school students in the last five years.